Hot Dogs and Tax

I was amazed today when I went to a 7-Eleven (a popular shop in Taiwan - and America I believe) and bought a hot dog containing a sausage of my choice, with mustard, ketchup and a very nice cup of ice coffee for only $49 (Taiwan Dollars). To you and me, that is only £1.00 (GBP). I'm telling you now, it is the nicest hot dog I have ever bought for £1.00. In Britain, I would be lucky to even get a cone of chips for that price! Here is a picture of a genuine 7-Eleven hot dog! Absolutely lovely... (little things please little minds)

But do not be fooled into thinking Taiwan is a cheap place to live because Taiwan is not as cheap as people may believe. I have found that food and drink, when bought from convenience stores like 7-Eleven or from the night market can be extremely cheap. I bought a tray full of lovely roasted duck for only $100, which is £2.00 in Britain. I can buy a 500ml bottle of coca cola for $20 = 40 British pence.

However, when looking at house prices, you would be hard-pushed to find a decent sized flat for under £180,000! Unless you want to live alone in the mountains that is...

Since I came here last year in August, it seems the prices have shot up though, even in the small shops. I suppose this is because of the world's weakening economic situation, but most things (except for property, technology and vehicles) are usually cheaper here than in Britain.

Along with cheaper prices though, comes lower salaries. The average salary for a Taiwanese person in Taiwan would be around $30,000 TWD per month, which is around £600.00 GBP for full time work (perhaps with a bit of unpaid overtime thrown in). Even with the lowest tax bracket of 7% income tax, this is still much lower than the minimum wage in Britain. If they are 'lucky' enough to earn between $370,001 and $990,000 TWD per year, their new tax bracket almost doubles and they have to pay 13%. I feel sorry for the poor guy/girl who gets paid exactly $370,001 TWD!

As a foreigner, for the first 183 days of being and working in Taiwan, I will be expected to pay 20% on my earnings. But luckily I am allowed the claim 7% back after the tax year (and the 183 days) is over when my tax rate drops down to 13%. If only I could earn a British salary on this income tax rate - I reiterate, 'if only'.

Thanks for reading and I hope you found this one insightful! Here is a beautiful picture of Taipei City. That large tower is called Taipei 101 - for those who don't already know!